In the news this morning: sales slide at Tiffany's, St. Jude Medical and PriceSmart beat earnings estimates, Eli Lilly settles a lawsuit, K12 makes some management changes, Herbalife prepares to defend itself, BlackRock buys Credit Suisse's ETF unit and Ruby Tuesday misses earnings estimates.
The jeweler with the iconic blue box said Thursday that it expects earnings for the fiscal year ending Jan. 31 to be near the low end of its previously announce range of $3.20 to $3.40 per share. Analysts had expected Tiffany (TIF) to earn $3.29 on average. Same-store sales for the two months ended Dec. 31 were flat while net sales worldwide were up 4%. For 2013 the company expects earnings to grow 6% to 9%.
St. Jude Medical
St. Jude (STJ) said Wednesday that it expects adjusted EPS of 90 to 92 cents per share on sales of $1.37 billion for the fourth quarter. The company had previously forecast adjusted EPS of 86 cents to 88 cents on revenue between $1.32 billion and $1.39 billion. Analysts had been expecting adjusted EPS of 87 cents per share on revenue of $1.37 billion.
PriceSmart (PSMT) said Wednesday that it earned 66 cents per share in the quarter that ended Nov. 30, compared to estimates for 62 cents per share. Revenues rose to $535.3 million, compared to estimates for $535.4 million. The company said sales in December rose to $253.7 million, and 11.6% increase from December 2011.
Drugmaker Eli Lilly (LLY) settled a lawsuit brought by four sisters who claim their breast cancer was caused by a drug their mother took while she was pregnant in the 1950s. The settlement could be the first in a series as 51 women have filed suits in Boston against the more than a dozen companies that made or sold DES, a synthetic estrogen. The suit brought by the Melnick sisters was the first to go to trial.
K12 (LRN) said Thursday that it was appointing Nathaniel Davis, who is currently the chairman of the company's board, as executive chairman. The new role will give Davis oversight over all operational and corporate functions. Company founder Ron Packard will continue as CEO, while Timothy Murray will stay on as president and COO. Margaret Jorgensen has been appointed chief academic officer.
Nutritional supplement maker Herbalife (HLF) is scheduled to present its case to Wall Street today. The presentation is a response to a lengthy presentation by William Ackman, who's hedge fund, Pershing Square Capital Management, has a large short position in the company. Ackman claims the multi-level marketing company is actually an illegal pyramid scheme. Yesterday, Dan Loeb, who heads Third Point LLC, disclosed an 8.9 million share position in the company.
Asset manager BlackRock (BLK) is buying the exchange traded funds units of Credit Suisse Group (CS). The unit has about $17.6 billion in assets under management across 58 funds, including $8.7 billion in funds that are based in Switzerland. Other funds are domiciled in Luxembourg and Ireland. The Price of the transaction was not disclosed.
Restaurant chain Ruby Tuesday (RT) reported an adjusted loss of 7 cents per share for the second quarter, wider than the 6 cent-per-share loss analysts had expected. Revenue was $304.2 million, missing analysts' estimates for $305 million. The company plans to close a number of restaurants and sell its two licensed Truffles Grill restaurants. The company's board also approved a 10 million share increase in the company's share repurchase authorization.